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Thread: iPhone 4 on VM (Smart Move or Disaster Waiting to Happen)

  1. #1
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    iPhone 4 on VM (Smart Move or Disaster Waiting to Happen)

    I have this sneaky suspicion that with the release of the iPhone 5, Sprint will move to have the iPhone 4 released on VM....Which will give Sprint a leg up against all other Pre-Paid competitors out there.

    Do you think this is smart and will work, or wait until NV is fully rolled out and the 3G can handle a crush-load of pre-paid iPhones.

    Only thing I'm thinking would keep the Pre-Paid from overwhelming the 3G network with iPhone 4 is price...if Sprint does release iPhone 4 on VM, don't look for the price to be any less than $399.99.

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    VM can't even handle its current load. Look at all the threads of people complaining about extremely low speeds. Unless Sprint fixes that, offering the iPhone will just cripple VM further.

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    I think kicking the iPhone 4 (not 4s) down to prepaid would be a good move but it should have a special plan to go with it as to not cannibalize postpaid.

    It may help satisfy the commitment Sprint agreed to with Apple.

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    I suggested this in the Boost forum a week or to ago and was bashed for it. Makes perfect sense to me. This doesnt have to happen this summer (if it drops this summer) or the following month after the 5 comes out. But if they end up with a surplus of iphone 4's, then by all means yes.

    Charge $350 for it and increase the plan if need be. Sprint has to sell a gang of iphones because of the deal they signed so sitting on 3yr old iphones would make little sense. They can still sell to Sprint customers but get the stock out and keep that trend going. At some point with network vision and wimax going to the prepaids, the 3g network will improve once a good # of states of LTE.
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    Quote Originally Posted by akayareal View Post
    Charge $350 for it and increase the plan if need be.
    The million dollar question would be what does the iPhone 4 actually cost Sprint?

    And yes, have a 60.00 a month plan with unlimited talk, text, and 2.5GB of data then throttle (for example) that will be less than the 79.99 postpaid plan but pure profit assuming no device subsidy.

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    An iPhone 4 costs sprint almost $550. The discount from msrp is negligible.

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    I don't know about right after the iPhone 5, but maybe as soon as an area is moved to Network Vision, they could release iPhone 4 to the great unwashed, just as long as they are not losing money on it.

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    If it's true that the 4 costs Sprint 550.00 that's a 450 subsidy to the postpaid customer. Ouch!

    Most bottom feeders on prepaid are not going to spend that kind of money for a phone.

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    CPGA does take a beating. Apple's ASP (average selling price) for the iPhone over the past few years tends to track the full retail price of the lowest flagship model.

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    Sprint CEO says the iPhone subsidy is 40% more than any other phone they carry including the Samsung Galaxy S2 epic touch or whatever they call it.

    The math is simple. Msrp for iPhone 4S is $650. Sprint and other carrier may get at most a 5-10% discount for bulk from apple. So real price is coose to $600 Samsung probably sells the Galaxy S2 for $450 in bulk to Sprint and other carriers.

    So sprint subsidy is close to $400 for Apple iPhones compared to other phones. So if they sell another android device for $199 on contract. They only subsided the customer $250 vs $400 for the iPhone. Do the math. 40% off $400 equals about $160.

    All remember sprint doesn't require a data plan if u sell the phone. But resellers like amazon can offer non iPhones for as little as 1 cents. But amazon requires 181 dates of mandatory data. That guarantees sprint 6 months of data revenue. More than makes up that 1 cents sale.

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    I did the math and found that 40% of $250.00 is $100.00. Therefore, the subsidy would be $350.00 for each iphone sold using your data....if it is to be 40% greater than the subsidy of the GS2.

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    iPhone Subsidy


    “What has been holding Apple back from becoming a wireless provider already, according to Bluestein, are the enormous handset subsidies paid by mobile operators (AT&T, VZW and Sprint in the US), which amount to about $381 for each iPhone sold today,” Bluestein noted.

    http://www.bgr.com/2012/05/01/apple-...=Google+Reader
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    Quote Originally Posted by 503ducati View Post
    iPhone Subsidy


    “What has been holding Apple back from becoming a wireless provider already, according to Bluestein, are the enormous handset subsidies paid by mobile operators (AT&T, VZW and Sprint in the US), which amount to about $381 for each iPhone sold today,” Bluestein noted.

    http://www.bgr.com/2012/05/01/apple-...=Google+Reader
    Like I said. Apple discounts carriers in bulk 5-10% of msrp.

    Whereas Samsung discounts carriers up to 30-40% from msrp in bulk.

    Apple makes twice as much profit as Samsung from cell phones.

    Apple doesn't want to be a mobile operator. It doesn't need to be. The carriers in the USA are in a pickle. Customers want the iPhone.

    Which carrier blinks first in terms of reducing the subsidy. Say sell the iPhone on post paid at $299 16gb?

    Verizon won't risk it. AT&T wont risk it. Sprint can't afford to risk it.

    Who want to mess with the iPhone demand?

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    I need to start playing the Lottery......

    Apple’s iPhone dives deeper into prepaid this September

    Prepaid mobile carrier Boost Mobile reportedly has plans to launch Apple’s iPhone 4S and iPhone 4 smartphones in early September. Citing an unnamed source, TechnoBuffalo recently reported that the Sprint-owned virtual carrier will offer both models with no contracts alongside its $50 unlimited prepaid plan, which includes unlimited voice calling, text messaging and Web. The handsets will launch just ahead of the expected debut of Apple’s next-generation iPhone this fall.


    http://www.bgr.com/2012/06/01/apple-...prepaid-rumor/

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    With Cricket selling it very soon it will be interesting to see how many people take the offer.

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